Take out a Stocks and Shares Junior Isa (Jisa) with Wealthsimple when the Royal baby is born and you won’t have to pay fees for a whole year.Image credit: AdrianHancu, istockphoto.com
What’s the deal exactly?
Wealthsimple is celebrating the upcoming arrival of the Royal baby with an offer of no fees for a year on a Jisa funded or opened within a month of when the Duke and Duchess of Sussex's child is born.
Why should I care?
If you're looking to put some cash aside for your kids, Junior Isas are a great way of doing so. These accounts are available to anyone under 18 and tend to offer much higher rates than adult accounts, but there are some restrictions.
Like the adult accounts, everything you earn in a Jisa is tax-free. This means you won’t pay any tax on your interest and you won’t be liable for any tax on capital gains or dividends if you choose to invest.
Jisas can be opened by parents with children aged under 16 and then by children themselves when they are aged 16 and 17.
In the 2019-20 tax year you can save or invest up to £4,368 in a Jisa. You can save for your child either in a Cash Jisa, a Stocks and Shares Jisa, or a combination of the two.
What’s the catch?
The offer lasts for just one month after the birth of the Royal baby.
As the Jisa is invested in stocks and shares you are not guaranteed a return like you are with a Cash Isa.
Wealthsimple charges 0.7% fees for deposits under £100,000. This will be deducted from the growth of the Isa.
It is important to remember that Stocks and Shares Jisas are riskier than Cash Isas and while you could make a bigger profit, the value can go down as well as up.
What other options do I have?
The current Moneywise best buy Junior Isa is the Coventry Building Society Junior Cash Isa which pays 3.6%.
Accounts can be opened with a pound in branch, over the phone, online or by post. Interest is paid annually on 30 September and the minimum balance is £1.
If you’re interested in saving with a Cash Isa, see Moneywise’s weekly recommendation.
Where can I find out more?
Find out more about Jisas on the Wealthsimple website, although currently there's no further information about the deal. We've checked with the firm though and it is going ahead.